The cost of used electric cars is increasing amid the Iran war and rising gas prices

DETROIT – The Iran war and rising gas prices in the United States have increased demand for used electric vehicles, making used cars more expensive, according to Cox Automotive.

The Mannheim Used Vehicle Value Index for EVs — which tracks prices of used vehicles sold at wholesale auctions in the U.S. — rose 12% last month compared to June 2025, the company reported Wednesday. That compares to a 1.7% increase for non-EVs over the same period.

Wholesale electric vehicle prices have risen every month this year, leading to an 11.5% jump in average prices to nearly $30,400, according to Manheim. Meanwhile, non-electric vehicles saw a less than 1% increase this year in average prices, to $19,125, Manheim said.

The average list price for a used electric vehicle as of May is $37,083, according to Cox’s Kelley Blue Book. Retail prices to consumers traditionally follow changes in wholesale prices.

“Electric vehicles continue to show strong performance, while SUV and pickup prices are faltering compared to this time last year,” Mannheim said in a statement.

Cox reports that consumer used EV sales reached 42,923 units in May, up 5.5% month-on-month and 24.7% year-over-year, with used EV market share holding at 2.8%. Tesla It is estimated that the models were in the lead with 15,353 units sold, followed by sales of all-electric vehicles from Hyundai, Chevrolet, Ford, and BMW.

Gas prices are expected to continue to determine whether vehicle costs rise amid an expected influx of off-lease electric vehicles later this year, said Jonathan Gregory, senior director of Cox Automotive.

An increasing number of used electric cars are expected to hit the market through the end of the year after automakers boosted their sales of all-electric vehicles with leasing offers three years ago.

“The risk we’re watching in the second half is that sharp decline in off-lease supply, especially EVs, which could put pressure on certain segments even as the headline holds. Gas is the swing factor: If pump prices continue to decline, some of the demand for EVs could fade as availability increases,” Gregory said.

AAA reports that national average gas prices are up about 21% over last year, to a national average of $3.80 per gallon. These prices have fallen from their recent highs, but escalating fighting in Iran led to higher oil prices on Wednesday.

The growing demand and rising prices of used electric vehicles are at odds with the prices of all-new electric vehicles. Several automakers reported that they saw a sharp decline in new electric vehicle sales during the second quarter.

Aside from automakers siphoning off billions of dollars to purchase new electric vehicles, year-over-year comparison is difficult. Demand for electric vehicles began rising last year during the second quarter ahead of expectations that the Trump administration would eventually offer incentives of up to $7,500 for consumers to purchase an electric vehicle.

The incentives expired in September, and EV sales rose to nearly 10% of all vehicles sold that month before declining later in the year.